Factor analysis (FA) is a statistical method of reducing a large set of data to a smaller set by identifying patterns in the data that have common characteristics. Factor analysis is sometimes called data reduction or dimension reduction. The original numerical values in the data set are observed variables (also called manifest variables) such as the items in a large survey or test. Factor analysis may find patterns characterized by a shared statistical relationship representing a factor, which is also called a dimension . A researcher examines the content of the items linked to this factor and chooses a factor label such as verbal skills for related items on an intelligence test. The factors may be treated as variables in additional research. These are secondary variables. Because they are created from the observed variables, they are considered latent variables. For example, if 5 items on a personality test are associated with one factor labeled "agreeableness" then...
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